Gaining intercultural competence of Japanese
and German managers in negotiations

by

 Suzanne Rehbein

Table of contents

1 Introduction 4

2 Intercultural competence 5

2.1 Definition of intercultural competence 5
2.2 Components and requirements of intercultural competence 6

3 Intercultural management trainings to gain intercultural competence 7

3.1 Meaning and aims of intercultural management trainings 7
3.2 Methods of intercultural management trainings 8
3.3 Assessments and problems of intercultural management trainings 9
3.4 Possible solutions to prevent problems of intercultural trainings 10
3.5 Effectiveness of intercultural trainings in negotiations of managers 10

4 Negotiations between Japanese and German managers 11

4.1 Management styles in Japanese companies 12
4.2 Decision making in Japanese companies 12
4.3 Communication styles of Japanese and German managers 13
4.4 Business practices of Japanese managers 14
4.5 Reasons for failures of negotiations 15

5 Conclusion 16

References 19

1 Introduction

In the present globalization gets more and more important not only in business life but as well as in the private life. Companies in different countries want to expand on foreign markets and aim to sell their products and services also in other nations. International joint venture connections, international projects and international decision makings lead to a more global world. Therefore there is a need for communication on an international level. Negotiations between foreign managers of different countries are essential to achieve the desired success. But managers of foreign cultures have to be intercultural competent. Intercultural competence is not natural but something that can be learned. Hence managers often have a lack of intercultural competence which can lead to failures of negotiations. Therefore it is obvious that intercultural competence is necessary for an understanding of the foreign culture, attitudes and behaviors of the managers’ opposite to run well negotiations. For that reason intercultural management trainings have been developed to avoid failures which derive from cultural differences of negotiating managers. This term paper will focus on negotiations of Japanese and German managers where intercultural competence is highly required. First in this term paper intercultural competence, its components and its requirements will be explained. Afterwards it will go into details of intercultural management trainings. In addition meanings, aims and methods of intercultural management trainings will be analyzed. Not always do intercultural management trainings as a way of gaining intercultural competence meet with anybody’s approval. For that reason assessment and problems may arise. These are pointed out as well as possible solutions to prevent these problems. Afterwards this term paper will discuss how effective such trainings are to gain intercultural competence which will lead to the particular aspect of negotiations between Japanese and German managers. Because of the great differences especially in management styles, in decision making and in communication styles, communication problems between Japanese and German managers may develop. These points will be analyzed and reasons for failures of negotiations will be given.

According to this, the term paper aims at analyzing that through intercultural management trainings in which intercultural competence has been achieved failures of negotiations between Japanese and German managers will be avoided. As it has been noted intercultural competence is something that can be learned and as a result different methods of gaining intercultural competence have been developed. Intercultural competence can not only be achieved through knowledge of other countries and cultures but also through one’s own attitudes towards foreign people. This term paper will draw attention to the above mentioned points and discuss whether Japanese and German managers have higher chances to be more successful and avoid failures in negotiations after taking part in such intercultural management trainings.

2 Intercultural competence

First in the following chapter the term intercultural competence will be defined and after that, components as well as requirements of intercultural competence will be analyzed.

2.1 Definition of intercultural competence

Intercultural competence can be defined differently according to the context the term is utilized. But first the term “intercultural” needs to be explained before defining what intercultural competence is. According to Rothlauf (1999; pp. 8-9) the term “intercultural” focus on relations and contacts which originate from encounters of people from different countries. Intercultural encounters extend over cultural hurdles and borders. Hence it is necessary to be intercultural competent to communicate in a proper way and to have an understanding for the foreign culture. Thus in this term paper the definition for intercultural competence of Lustig and Koester is used who stated that “The trait approach to intercultural competence attempts to identify the kinds of personality characteristics and individual traits that allow a person to avoid failure and achieve success in intercultural encounters.” (Lustig and Koester 1999; p. 64). Intercultural competence is affected by various components and influences people’s behaviors and understandings when people of different cultures meet. Perception, behavior and culture add to the understanding of intercultural competence. Therefore individual characteristics and attitudes must be taken into account when trying to understand intercultural competence (Lustig and Koester 1999; pp. 64-65).

Dealing well with situations like negotiations of managers from different countries, understandings and qualifications are needed. Especially people of different cultures have very dissimilar beliefs, attitudes and behaviors which make understandings more complicated. Loiselle (2000; p. 130) explained that competence is not equal with qualifications. Qualifications can be learned but competence is something subjective and personal. Moreover it is not the actual application of skills but a regulation of disposals. Consequently competence can be perceived through the quality of visible actions when actions of a person are realized. Hence it is important to achieve intercultural competence to be profitable especially when managers of different countries meet to negotiate and try to achieve the best solutions. In brief, Rothlauf (1999; p. 66) summarized intercultural competence as the ability and authority to interact efficiently and effectively with the environment of people from diverse cultures.

2.2 Components and requirements of intercultural competence

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